The Success Of Fast Fashion Brand ZARA

Non internet thinking of fast fashion clothing brand ZARA

In October 23rd, the title of the world's richest man was briefly changed, Spain.

Amancio Ortega, the boss of group Inditex, once surpassed Bill Gate and became the richest man in the world.

However, with the change of stock prices, Ortega returned the title of richest man to Gates in a few hours.

But don't look down on Ortega. In today's Internet age, he can rely on the traditional clothing industry to exert power on a large number of Internet giants. He has long been among the top of the list of rich people.

In addition, Ortega's total wealth is more than that.

The big guys in the circle.

Despite having multiple luxury brands including LV and DIOR, Bernard Arnault, the boss of LVMH, a luxury group, has less than half of Ortega's assets.

Ortega's success is actually the success of Inditex.

Inditex is currently one of the four fashion retailing groups in the world.

In recent years, Inditex has become the largest fashion group in the world by virtue of its popularity and global expansion of its brand ZARA, which has surpassed the other three.

In the past 10 years, the market value of Inditex has increased by about 570%, and the profit in the first half of this year has increased by 26% over the same period last year.

The group has eight brands of clothing, including ZARA, Pull &Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Uterque and ZARA HOME, each of which has division of labor.

Among them, ZARA is the most famous and successful.

Data show that ZARA shop sales per square metre reached 4928 euros (about 35 thousand and 500 yuan).

In the recently released global brand list 2015, ZARA also ranked fourth in clothing with a brand value of $22 billion 20 million.

Like many rich men in the industrial age, Ortega was also a hardship, his father was a railway worker and his mother was a housewife.

Ortega dropped out of school to work in a clothing store at the age of 13, and later fell in love with Sariya Mela, a woman tailor whose fate was similar.

Once, the shopkeeper told Ortega to sell a lady.

Ortega found that this elegant and beautiful Nightgown is popular among women, but the price is prohibitive by most people.

So the couple decided to open up a new market, using cheap materials to imitate popular fashions, and sell them at a lower price.

In 1975, ZARA was born.

ZARA has been popular in recent years for several reasons: first, the speed of reaction to fashion.

The traditional fashion brand design team should first predict the fashion trend after 12 months, and then develop related products.

If the designer forecasts errors, the products will have to be sold at a reduced price, thereby affecting profits.

ZARA has recruited a large number of designers from 480 people, and has established a comprehensive fashion intelligence station in Paris, Milan, New York and other fashion fashions.

Coupled with the ZARA's super production and distribution capabilities, the world's only fashion company that can produce good garments in 15 days to more than 850 stores worldwide; 12 days to complete the whole process from fashion information collection to sales; two new window displays in a week; 7 days of capital return; the longest 15 days product storage time; 80 thousand hours per hour delivery capacity -- the most fashionable fashion fashion anywhere in the world, ZARA can produce similar products to market within five days.

The traditional brand is new only once a quarter, and ZARA comes up two times a week, which means that ZARA can always lead the fashion trend.

Of course, such a practice also makes ZARA often faced with tort lawsuits. However, tens of millions of euros per year for infringement penalties are indeed a drop in the bucket compared with the profits of ZARA.

Second, it is a special marketing strategy.

Although it is a fast selling brand, ZARA is not ashamed.

It uses best models, shops in the most expensive sections, and lives next to luxury brands. In Ortega's view, these are the best advertisements.

In New York, it shops in Fifth Avenue; in Paris, it chooses Champs Elysees street; in Shanghai, it is Nanjing road.

This has greatly satisfied the vanity of consumers.

Taking the market of big cities first, ZARA is quickly accepted by consumers in small and medium-sized cities.

In addition, ZARA implementation

When the output of the new product reaches 50% to 60% of the scheduled product, it will be sent to the store. If the performance is poor in the first week after the shelves, it will be withdrawn immediately and no longer will be added to the production. Then the hot products will only be supplemental to two goods.

This way of quick updating of a small quantity of products, on the one hand, reduces the chance for people to bump into shirts; on the other hand, it attracts customers to frequent patronage; once again, if shoppers want to buy a product, they must hurry, otherwise the goods may soon be out of stock.

ZARA's approach has also been emulated by other competitors.

In recent years, they have launched a series of cooperation with internationally renowned designers and celebrities. The designers who have come to cooperate can be considered to be a bigger card than the other ones, such as the recent Uniqlo, Lemaire, H&M and BALMAIN.

Such a series of cooperation not only helps the public realize the importance of being famous at low prices.

The desire of this work has greatly increased the sales volume of the brand, and to some extent, reversed the low-grade image of fast fashion.

In fact, not only did Ortega shine brilliance on the rich list, but the Japanese brand Uniqlo (UNIQLO) boss Liu Jing Zheng and the Swedish brand H&M boss Stefan Persson were also frequent visitors to their rich list in recent years, or even ranked the richest.

Fast fashion is popular in recent years. It is obviously related to the trend of consumer demand under the financial crisis. People can not afford to buy expensive goods and buy something that they can afford. This is the famous "lipstick effect".

But what is more fundamental is the innovation of these brands in design, supply chain, marketing strategy and so on, so that the brand owners can get high profits in our low profit clothing industry.

This is a must for today's words.

It is very important for Chinese enterprises who always want to take shortcuts.